1. ❘ 1 Coal-Biomass Direct Liquefaction R.F.Bauman P. Maa S. Zaczepinski April 17, 2012

2. ❘ 2 Accelergy Team Goals ● Economically produce transportation fuels from coal ● Provide technology with World’s highest thermal efficiency ● Minimize water use ● Ensure 100% Carbon Capture and Utilization (CCU)

3. ❘ 3 International Team Combines “Best” of East and West Technology Providers DemonstrationEngineering Contractors PARC CCRI

4. ❘ 4 Direct Coal Liquefaction Process Result of 30 Year Development Program ● Three scale-up steps (0.03, 1, and 250 T/D) to minimize risk ● Tested lignite, sub-bituminous, and bituminous coals extensively ● Defined impact of key variables on operability and productivity – Included catalysts, reactor types, donor solvent, upgrading, etc. Equipment design guides developed during 1,000 B/D demo No need for additional equipment testing ● 1 st and 2 nd Generation DCL Processes declared Technically Ready – Requires 0.1 T/D integrated confirmation run for new coals

5. ❘ 5 Distinguishing Features of 2 nd Generation Microcatalytic Coal Liquefaction (MCL) ● Based on ppm level Microcatalyst addition ● Eliminates solvent hydrotreater and associated energy loss ● Uses low recycle gas rates - minimizes compression and equipment cost ● Utilizes slurry liquefaction reactors ● Bottoms recycle ● Produces a raw 380°C minus product from liquefaction ● Fixed bed upgrading to premium, all transportation fuels product Design offers highest thermal efficiency and lowest investment/operating cost

6. ❘ 6 CCRI Pilot Plant Extensively Modified to Operate in MCL Mode

7. ❘ 7 CCRI MCL Operations on Ordos Basin Coal Up to 67wt% (maf) C5/380°C liquid produced from high inertinite, Ordos Basin coal Condition 1 Condition 2 Yankuang Demo For direct liquefaction, the ash level in the unconverted coal is a direct measure of conversion to liquid fuels and the stability of the operation.

8. ❘ 8 MCL Successfully Demonstrated On Ordos Basin Coal ● Basis for Yankuang NDRC submittal ● Modified unit achieved 100% Service Factor ● No reactor deposits or solids buildup ● Operated without solvent hydrotreater ● Recycle gas rate minimized ● Liquid product 380°C Minus

9. ❘ 9 Criterion Upgrading Demonstrated on Ordos Basin Product ● Raw MCL product upgraded to finished diesel and jet fuel – Two stage upgrading utilized with Criterion catalysts – Euro 4 blends prepared with Yankuang derived F-T diesel – Jet fuel and U.S. diesel products also produced from MCL ● All diesel and jet fuel samples meet product specifications – Final products free of sulfur, nitrogen, and oxygen

10. ❘ 10 Upgrading of MCL Product to On-Specification Diesel or Jet Fuel Demonstrated MCL derived fuels have high volumetric Btu content and excellent cold flow properties

11. ❘ 11 Range of Commercial Applications Defined ● Based on Ordos Basin Coal ● All balanced plants (no import or export of power) ● Plants include onsites and offsites (coal drying, etc.) ● Finished products leaving plant battery limits ● Cases do not include Accelergy Carbon Capture and Utilization (CCU) – Will be addressed in later slides

12. ❘ 12 Accelergy Offers Highest Known Thermal Efficiencies F-T MCL & F-T MCL Only MCL Only Coal Coal Coal Coal / Natural Gas Typical GTL (Yankuang)

13. ❘ 13 CO2 Production Lower For High Efficiency Cases F-T MCL + F-T MCL MCL Coal Coal Coal Coal + Natural Gas Typical GTL

14. ❘ 14 Features of Accelergy TerraSync™ Carbon Capture and Utilization (CCU) Technology ● Converts CO2 into bio-fertilizer or soil remediation agent ● Continues to consume CO2 after application to fields or desert – Typically 30 times the CO2 (over life time) required to produce TerraSync™ ● Bio-fertilizer returns carbon from the atmosphere back into soil – Restores soil fertility – Fixes nitrogen from the air ● Can also be used as a soil conditioner

15. ❘ 15 Integration of MCL and TerraSync™

16. ❘ 16 TerraSync™ CCU Advantages Over Carbon Capture and Sequestration (CCS) ● CCS – Energy intensive – Only applicable to areas with appropriate geologic structure – Risk of future release ● MCL / TerraSync™ (CCU) – Only requires processing of 1/30th of CO2 produced – Pure CO2 available from MCL at pressure – Ammonia byproduct available as nutrient for algae growth – Waste heat available from MCL for drying – Nitrogen fixation reduces need for synthetic fertilizers

17. ❘ 17 Commercial Status ● Yankuang MCL / F-T Project submitted to NDRC – 3.4 million metric tons/year fuels capacity – Based on high inertinite, Ordos Basin coal – MCL and Upgrading fully demonstrated – Diesel meets Euro 4 specifications – Utilizes TerraSync™ to offset CO2 emissions – TerraSync demo scheduled to start 2 nd Q – Exceeds NDRC targets for thermal efficiency, water use, CO2 reduction ● U.S. Feasibility Studies focused on diesel and jet fuel – Will take full advantage of available low cost, natural gas

18. ❘ 18 Bright Future Predicted ● Accelergy only technology platform to fully meet NDRC requirements – Offers route to offset China’s rapidly increasing oil imports – Reduces concerns over oil availability and unstable price – Extends life of coal reserves – Produces required high quality diesel and jet fuel – TCC evaluation confirms attractive economics ● Attractiveness improves when both coal and natural gas available – Significantly reduces investment and increases efficiency – Combination of coal and gas optimum; avoids CO2 production from coal or H2O production from GTL